Toys R Us Japan: Strategy, Issues and Challenges

Provide an analysis of the strategy, issues, and challenges that Toys R Us faced trying to enter the Japanese markets. The analysis should include an evaluation of the market culture, strategy, execution and outcomes. Some topics should include (leadership, cultural diversity, effective communicating across cultures, etc.)

"Toys R Us Japan" (Harvard Business School case, no. 9-796-077, by Debora Spar).

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Introduction

The expansion of the business is an activity that needs deep analysis of the several aspects to grab strange market effectively (Chan, 2006). This paper analyze the overall expansion of Toys "R" Us into Japanese market. This analysis include market culture, strategy, issues, challenges, execution and outcomes that company faced at the time of entrance into another market.

Market Culture of Japan

The analysis of market culture refers to the development of understanding regarding every aspect of the market in which a company going to enter (Chan, 2006). Japan is the second largest toy market in the world. Earlier, it was on the number one position, but due to thorough education the birth rate of Japan decreased and consequently spending on toys. In Japan, retailers shop toys from domestic wholesaler so, in term of wholesale level, Japanese toy industry was highly characterized. Japan is famous for market of small shopkeepers and Japanese are closely related to such tiny shops. Japanese are socially well behaved and more attracted towards the unique and antique things (Doole & Lowe, 2008). The legal restriction of Japan regarding large retail stores also reflects the attachment of people with small shops.

But after some time, Ministry of International Trade and Industry (MITI) made provision for those shopkeepers, who wants to expand their market into large chain. In relation to this provision, all large scale chains have to take permission before any of big establishment in Japan. Along with this, Japan has changed the retail structure that called convenience stores. These stores are not acquired more than 1100 sq. ft. and attract town and village people. Keiretsu stores involve some stores that only purchase manufacturer brand on manufacturer's price. This reflects diversity and changeable nature of market culture in term of business and social life of people. So, such ...

Solution Summary

The solution discusses the strategy, issues and challenges that Toys R Us faced trying to enter the Japanese markets.